Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Evaluating Turnover and Nontraditional Efficiency Ratios Across Industries The following information is taken from publicly traded retailers. The data come from the balance sheet,
Evaluating Turnover and Nontraditional Efficiency Ratios Across Industries The following information is taken from publicly traded retailers. The data come from the balance sheet, income statement, and Item 2 on the companies' Form 10-K filings. Use the information to answer the requirements. $ millions Average Retail SQ # of Revenue COGS Inventory Footage (000s) Stores Autozone Costco $11,445 $4,902 144,408 121,715 $3,991 41,066 6,202 10,646 110,700 762 Home Depot 110,367 71,043 13,604 237,700 2,287 Lowe's 72,735 48,396 O'Reilly 9,727 4,237 Walmart 521,964 374,623 12,217 3,164 44,907 209,000 2,015 38,455 5,219 1,129,000 11,361 Required a. Compute the days inventory outstanding (DIO) for each company. Note: Do not round until your final answer; round your final answer to the nearest whole day. DIO AUTOZONE 297 days COSTCO 32 days HOME DEPOT 70 days LOWE'S 92 days O'REILLY 273 days WALMART 44 days b. Compute the gross profit margin for each company. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). DIO AUTOZONE % X COSTCO % * HOME DEPOT 9 X LOWE'S % * O'REILLY WALMART % * % * c. Compute the following two nontraditional efficiency metrics: Revenue per square foot and Revenue per store. Note: Round your answers to two decimal places (for example, enter 6.78 for 6.77555). Revenue per SF Revenue per store AUTOZONE COSTCO $ $ x HOME DEPOT x x LOWE'S O'REILLY x x WALMART
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started